BILL NUMBER: SB 2113	CHAPTERED  09/26/00

	CHAPTER   661
	FILED WITH SECRETARY OF STATE   SEPTEMBER 26, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 24, 2000
	PASSED THE ASSEMBLY   AUGUST 7, 2000
	PASSED THE SENATE   MAY 30, 2000
	AMENDED IN SENATE   MAY 25, 2000
	AMENDED IN SENATE   MAY 18, 2000
	AMENDED IN SENATE   APRIL 27, 2000
	AMENDED IN SENATE   MARCH 30, 2000

INTRODUCED BY   Senator Burton

                        FEBRUARY 25, 2000

   An act to add Section 33333.7 to the Health and Safety Code,
relating to redevelopment.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 2113, Burton.  Redevelopment plans:  San Francisco.
   The Community Redevelopment Law prescribes time limits on the
effectiveness of, and the establishing and payment of debt and the
receipt of property taxes pursuant to, redevelopment plans adopted on
or before December 31, 1993, and authorizes a 10-year extension of
those time limits, as specified.  The Community Redevelopment Law
also imposes specified requirements relating to replacement of low-
or moderate-income housing units that are removed or destroyed.
   This bill would authorize the Redevelopment Agency of the City and
County of San Francisco, subject to the approval of the board of
supervisors of that city and county, to incur indebtedness
exclusively for Low and Moderate Income Housing Fund activities until
January 1, 2014, or until the agency replaces all of the housing
units demolished prior to the enactment of the replacement housing
obligations, whichever occurs earlier, and to receive tax increment
revenues to repay indebtedness incurred for those activities until no
later than January 1, 2044, as specified.  The bill would prohibit
the agency from incurring that indebtedness until the Director of
Housing and Community Development certifies the net difference
between those housing units destroyed prior to January 1, 1976, and
those rehabilitated, developed, or constructed, prior to that date.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  (a) It is the intent of the Legislature in enacting
this act to enable the Redevelopment Agency of the City and County of
San Francisco to redress the demolition of a substantial number of
residential dwelling units affordable to very low, low-, and
moderate-income households during the agency's earlier urban renewal
efforts.  San Francisco's housing situation is unique, in that median
rents and sales prices are among the highest in the state even
though it has consistently exceeded the housing production goals of
the Community Redevelopment Law and has used local funds beyond the
Low and Moderate Income Housing Fund to assist affordable housing
development.  San Francisco's early redevelopment activities,
including the removal of previously existing dwelling units serving a
lower income population, have compounded the effects of the private
market that have led to the city's current affordable housing crisis.

   (b) The Legislature finds and declares that prior to the enactment
of the replacement housing obligations in Section 33413 of the
Health and Safety Code (Chapter 970, Statutes of 1975), agencies
destroyed or removed dwelling units housing persons and families of
low or moderate income without replacing those units.  In particular,
some of San Francisco's existing redevelopment project areas have
fewer housing units affordable to low- and moderate-income households
than were in existence prior to the initiation of urban renewal
activities.  Four of San Francisco's project areas adopted prior to
1970 experienced a combined net loss of approximately 7,000 units of
housing affordable to low- and moderate-income households since the
initiation of redevelopment activities.  The Redevelopment Agency of
the City and County of San Francisco, due to its unique housing
situation and net loss of affordable housing units in these project
areas, wishes, to the greatest extent feasible, to replace these lost
units according to the formulas set forth in Section 33413 of the
Health and Safety Code.
   (c) The Legislature further finds and declares that allowing the
Redevelopment Agency of the City and County of San Francisco to
replace units destroyed or removed prior to the enactment of the
replacement housing obligations in 1975 is consistent with a
fundamental purpose of the Community Redevelopment Law identified in
subdivision (a) of Section 33334.6 of the Health and Safety Code,
namely the provision of affordable housing.
   (d) The Legislature further finds and declares that the time
limits for incurring indebtedness in Section 33333.6 of the Health
and Safety Code impede the efforts of the Redevelopment Agency of the
City and County of San Francisco to replace affordable housing units
destroyed or removed prior to the enactment of the replacement
housing obligations in 1975.
   (e) The Legislature further finds and declares that the
Redevelopment Agency of the City and County of San Francisco should
be granted a limited continuance of specific tax increment financing
powers to achieve its goal of replacing housing units, and that this
continuance will have no fiscal impact on the state.
   (f) This limited continuance in no way affords the Redevelopment
Agency of the City and County of San Francisco an extension of any of
its powers, above and beyond tax increment financing and the
collection of tax increment to repay indebtedness exclusively to
support Low and Moderate Housing Fund activities, nor does it signify
the extension or expansion of the redevelopment plans or activities
to which paragraph (1) of subdivision (a) of Section 33333.6 of the
Health and Safety Code applies.
  SEC. 2.  Section 33333.7 is added to the Health and Safety Code, to
read:
   33333.7.  (a) Notwithstanding the time limits in paragraph (1) of
subdivision (a) of Section 33333.6, the Redevelopment Agency of the
City and County of San Francisco may, subject to the approval of the
Board of Supervisors of the City and County of San Francisco, retain
its ability to incur indebtedness exclusively for Low and Moderate
Income Housing Fund activities eligible under Sections 33334.2 and
33334.3 until January 1, 2014, or until the agency replaces all of
the housing units demolished prior to the enactment of the
replacement housing obligations in Chapter 970 of the Statutes of
1975, whichever occurs earlier.  The ability of the agency to receive
tax increment revenues to repay indebtedness incurred for these Low
and Moderate Income Housing Fund activities may be extended until no
later than January 1, 2044.  Nothing in this paragraph shall be
construed to extend a plan's effectiveness, except to incur
additional indebtedness for Low and Moderate Income Housing Fund
activities, to pay previously incurred indebtedness, and to enforce
existing covenants, contracts, or other obligations.
   (b) Annual revenues shall not exceed the amount necessary to fund
the Low and Moderate Income Housing Fund activities of the agency.
The agency shall neither collect nor spend more than 10 percent for
the planning and administrative costs authorized pursuant to
subdivision (e) of Section 33334.3.  Revenues received under this
paragraph shall not exceed the amount of tax increment received and
allocated to the agency pursuant to the plan, as it has been amended,
less the amount necessary to pay prior outstanding indebtedness, and
less the amount of the project area's property tax revenue that
school entities are entitled to receive pursuant to Chapter 3
(commencing with Section 75) and Chapter 6 (commencing with Section
95) of Part 0.5 of Division 1 of the Revenue and Taxation Code if the
plan had not been amended.  Additionally, revenues collected under
this paragraph are subject to the payments to affected taxing
entities pursuant to Section 33607.
   (c) The activities conducted with revenues received under this
paragraph shall be consistent with the policies and objectives of the
community's housing element, as reviewed and approved by the
department, and shall address the unmet housing needs of very low,
low- and moderate-income households.  The activities shall also be
consistent with the community's most recently approved consolidated
and annual action plans submitted to the United States Department of
Housing and Urban Development, and if the director deems it
necessary, the annual action plans shall be submitted to the
department on an annual basis.  No less than 50 percent of the
revenues received shall be devoted to assisting in the development of
housing that is affordable to very low income households.
   (d) The agency shall not incur any indebtedness pursuant to this
paragraph until the director certifies, after consulting with the
agency, the net difference between the number of housing units
affordable to persons and families of low and moderate income that
the agency destroyed or removed prior to January 1, 1976, and the
number of housing units affordable to persons and families of low and
moderate income that the agency rehabilitated, developed, or
constructed, or caused to be rehabilitated, developed, or constructed
within the project areas adopted prior to January 1, 1976.
   (e) The agency shall not incur any indebtedness pursuant to this
paragraph unless the director of the department certifies annually,
prior to the creation of indebtedness, all of the following:
   (1) The community has a current housing element that substantially
complies with the requirements of Article 10.6 (commencing with
Section 65580) of Chapter 3 of Division 1 of Title 7 of the
Government Code.
   (2) The community's housing element indicates an unmet need for
Low and Moderate Income Housing Fund activities.
   (3) The agency's most recent independent financial audit report
prepared pursuant to Section 33080.1 reports acceptable findings and
no major violations of this part.
   (4) The agency has complied with subdivision (a) of Section
33334.2.
   (5) The agency has met the requirements of this part with respect
to the provision of dwelling units for persons and families of low or
moderate income, including, but not limited to, the requirements of
Section 33413.
